HOME-GROWN stockbroking outfit Malacca Securities has rolled out what is deemed as the first and only initial public offering (IPO) financing solution in Malaysia via its M+ Global trading platform.
Poised to set a new standard for investors looking to capitalise on the IPO market, the pioneering service aims e aim to enhance the chances of investors in securing IPO shares by leveraging financing to maximise their allocation potential.
Recall that 2024 saw an IPO boom on Bursa Malaysia with a total of 55 listings that boasted a combined market capitalisation of RM31.37 billion.
Notably, 87% of these IPOs closed above their listing price on debut, hence providing an average of over 77% gains on IPO day to successful subscribers.
However, demand for high-profile listings often exceeds supply, leaving many investors struggling to secure allocations and unable to participate in the most exciting opportunities.
This has prompted Malacca Securities to address this issue with a solution to help investors boost their subscription power.
With the M+ Global’s IPO Financing, investors can now supercharge their allocation chances and maximise potential returns – without tying up all their capital.
By borrowing funds, they can apply for larger IPO allocations, making it easier to tap into high-demand listings and giving them the best shot at securing IPOs.
Taking the recent Oriental Kopi Holdings Bhd IPO as an example, an investor using RM10,000 in cash only had a 5.04% allotment success rate while standing a chance to earn a profit of RM3,480 (first day closing price).
However, with the M+ Global’s IPO Financing 5x Leverage, this RM10,000 could multiply into RM50,000, thus boosting the buying power of investors and their allotment chances by 40.3% and growing their profit into RM5,220.
“As pioneers in the industry, we are not just introducing a feature – we are re-shaping how Malaysians access IPOs,” commented Malacca Securities’ managing director Lim Chia Wei.
“For too long, IPO investing has favoured the few. Our financing solution is democratising access by enabling all investors to maximise their IPO participation.”
Added Lim: “While IPOs typically offer high potential returns, we recognise that traditionally the IPO financing process can be tedious and costly.
“Thus, M+ Global’s IPO Financing aims to offer a solution to help investors increase their allocation chances with a seamless, instant and transparent process that’s also free of charge – if they do not receive an allocation.” – Feb 28, 2025
